FRESNO, Calif. – For the first time since its collapse last May, the co-founders of Bitwise Industries released a public statement on Thursday – one day after they each pleaded guilty to two felony charges.
In a statement released to the social media account for Irma Olguin Jr. on the platform X, an apology addresses former “teammates, investors, lenders and their respective families.”
“We wanted so badly to see Bitwise succeed, to see Fresno succeed, and to see our teammates succeed,” the joint letter reads. “That gave rise to the false belief that those things were only possible if Bitwise kept going. Over a critical period of time with much on the line, we absolutely, unequivocally, and irreversibly chose the wrong way.”
“We are deeply sorry,” Olguin Jr. and Jake Soberal write.
Bitwise’s business model primarily focused on workforce training in technology, consulting and real estate. The company billed itself as a job producer in underserved communities and for people from marginalized backgrounds.
But last year, the company suddenly declared bankruptcy and furloughed its entire workforce – including 400 in the Fresno area.
A criminal investigation charged Soberal and Olguin Jr. with defrauding investors of more than $100 million as they ran their Fresno-based technology business.
Investigators say by 2022, the company had raised as much as $75,000,000, but ”was not making a significant profit and was running low on funds.” The founders were accused of regularly presenting fraudulent cash balances to investors.
The co-founders reached a plea deal on Wednesday to two counts each of wire fraud and wire fraud conspiracy, more than a year after the tech company collapsed.
In exchange for pleading guilty, Soberal and Olguin Jr. accepted the charges, will pay up to $115 million in restitution, and could receive a sentence on “the low end of applicable guideline range,” according to court records. The two await a November sentencing, where they face at least five years of prison.
“Regardless of how you feel about us,” the letter concludes. “[Jake and I] still love you and want good things for you, and we are profoundly sorry that our failures led to this place.”
